Brookdale Senior Living has agreed to buy 30 assisted living and memory care communities it currently leases from Welltower for US$290m.
Why Brookdale Senior Living is buying 30 leased senior living communities (Welltower)
Chief executive Nick Stengle said ownership allows Brookdale to capture the full benefit of future operating growth. The deal removes about US$17.8m of 2027 cash rent and would raise the owned share of Brookdale's consolidated units to nearly 80%.
Deal terms and financing
The 30 communities comprise 1,152 units in 13 states. Brookdale will pay with cash on hand and non-recourse mortgage debt. Contingent on closing, a separate 39-community, 1,842-unit Welltower lease will be extended from June 2032 to June 2036, with a fair market value purchase option exercisable at any time subject to a 6.5% yield floor.
Regulatory approvals and timing
Completion is subject to customary conditions and is expected in the fourth quarter of 2026.
Market context
Brookdale said on the same day that it had completed the purchase of 17 other communities with 735 units for about US$157m on 30 September.
